Coinbase, the largest cryptocurrency exchange based in the US has filed to go public with U.S. Securities and Exchange Commission (SEC). The company will be following the direct listing route and has applied to list its shares on NASDAQ. Here is what you need to know.
Coinbase is a digital currency exchange that was founded in 2012, the company enables users to buy, sell and store cryptocurrencies. According to Coinbase company’s website, it has more than 43 million investors in 100 countries, 2.8 million users make monthly transactions. They collectively account for $455 billion in trades and $90 billion in assets. According to SEC filings, 56% of trading volume comes from Bitcoin and Ethereum. Similarly, the company had net revenue of $1.2 billion in 2020. While 96% of the revenue came from transaction fees, other revenue included revenue from the direct sale of the crypto assets and interest income.
Furthermore, the SEC filing reveals that Coinbase has applied to list its Class A common stock on NASDAQ under ticker “COIN”. Contrary to the traditional way where a company filing for IPO hires an underwriter or investment bank, the stock will be offered for sale via a direct listing technique. This means that any person or institution with a brokerage account can place an order for the share. Spotify has also followed this method in the past.
The much-anticipated move by Coinbase to go public comes in line with the mainstream acceptance of Bitcoin. Although the cryptocurrency is subject to volatility, investments made by Tesla, Mastercard, New York Mellon, and Square have added legitimacy to cryptocurrency as a store of wealth.
The announcement by Coinbase is going to send positive sentiments for cryptocurrencies across the board. Invest in XcelToken Plus (XLAB) an ERC-20 token based on the Ethereum platform with great use cases. Use XLAB to book hotels and flights in XcelTrip- a decentralized travel platform. Buy, Sell and Hold XLAB in leading exchange platforms.